IPO Surge: A Promising Start to 2025

As 2025 unfolds, the Indian primary market is witnessing a remarkable resurgence in Initial Public Offerings (IPOs). After a slow start, the momentum has picked up significantly, with 53 mainboard IPOs already making their debut on Dalal Street this year. Notably, three more companies—Urban Company, Dev Accelerator, and Shrinagar House of Mangalsutra—are set to open their IPOs this week, further fueling investor interest.

The Growing IPO Landscape

The current optimism in the IPO market is underscored by the fact that 84 companies are poised to launch their IPOs, offering both retail and institutional investors a plethora of opportunities. This surge in activity stands in stark contrast to the sluggishness observed in the Indian secondary market. Even foreign portfolio investors (FPIs) are exhibiting a trend of favoring IPOs while divesting from existing stocks, indicating a shift in investment strategies.

Harshal Dasani, Business Head at INVAsset PMS, notes, "This divergence—weak secondary trade but robust primary activity—is often seen in maturing markets where domestic pools of capital can anchor issuance even when global sentiment is shaky." This trend reflects a growing preference among investors for new growth stories rather than chasing crowded valuations in the secondary market.

Upcoming IPOs: A Look Ahead

Among the 84 companies awaiting SEBI approval, LG Electronics stands out as a potential heavyweight, aiming to raise ₹15,000 crore through an offer for sale by its promoters and selling shareholders. Following closely are Credila Financial Services and Dorf-Ketal Chemicals, each planning to raise ₹5,000 crore. Other notable names in the pipeline include PhysicsWallah, Hero FinCorp, and WeWork India, all of which are gearing up for significant public offerings.

Notable Upcoming IPOs

This robust pipeline of IPOs is indicative of a healthy deal flow, with companies across various sectors eager to tap into the capital markets.

Factors Supporting IPO Momentum

Analysts are optimistic that the momentum in India’s IPO market will continue. With over 80 firms holding SEBI approval and several high-profile filings anticipated across sectors like technology, healthcare, and renewables, the outlook remains positive. Regulatory clearances have accelerated, and issuers are lining up to raise funds amid a favorable policy environment.

The Reserve Bank of India’s recent rate cuts have improved funding conditions, while strong domestic flows from mutual funds and retail Systematic Investment Plans (SIPs) provide a reliable anchor for demand. Dasani emphasizes, "The IPO market is positioned to remain one of the brightest spots of Indian capital markets through FY26, supported by domestic liquidity, regulatory momentum, and structural investor appetite for new paper."

Navigating Global Risks

While global risks—such as foreign outflows and trade tensions—could temper exuberance, they are unlikely to derail the broader trend in the IPO market. The resilience shown by domestic investors and the regulatory framework in place suggest that the IPO landscape will continue to thrive.

Conclusion

The surge in IPO activity in 2025 reflects a dynamic shift in investor sentiment and market conditions. With a robust pipeline of upcoming offerings and a favorable regulatory environment, the Indian IPO market is set to remain a focal point for investors seeking growth opportunities. As always, potential investors are advised to consult with certified experts before making any investment decisions, as market conditions can change rapidly.

This article serves as an informative overview of the current IPO landscape, highlighting the opportunities and challenges that lie ahead in the vibrant world of Indian capital markets.